In his Forbes magazine article published Thursday, Nathan Lewis makes it sound easy to get back to a gold standard. After all, it has been accomplished numerous times in history around the world, including in America following the Civil War.
CNN’s article by Charles Riley quoted several of the Republican candidates for President out of context and then asked several unknown Keynesian economists — Keynesians believe in growing and empowering the government to stimulate the economy — to comment on those quotes. The result was a one-sided dismissal of anything the candidates had to say about the economy and how they might fix it.
After three years of trying to solve their self-imposed debt crisis, the Jefferson County, Alabama, commissioners threw in the towel on Wednesday and declared bankruptcy. The bankruptcy, involving over $4 billion in debts owed by the county, will be costly to the banks who loaned the money, the private investors who participated in the bond offerings, the guarantors of the debt, and most especially, the taxpayers of Montgomery.
Critics of the banking system in the United States declared Saturday, November 5, National Bank Transfer Day — a grassroots movement that encouraged bank customers to switch to credit unions. The notion behind the event was to teach banks a critical lesson. The effort reportedly has had some positive impact on the credit unions; however, overall it proved to have the opposite effect on banks from what the protesters intended.
Fed Chairman Ben Bernanke’s news conference on November 2 included the admission that the Fed is depending on hope and patience to see if its continuing strategies of Operation Twist and zero interest rates will grow the economy out of recession. In his session with reporters, Bernanke defended Fed actions in the face of increasing criticism from both the left and the right.
After spending the entire weekend trying to sell his company, MF Global, Chairman Jon Corzine finally capitulated, and his board declared bankruptcy on Monday morning, October 31. It was during negotiations with a potential suitor for the business, Interactive Brokers (IB), that word leaked out that customers’ monies were missing, and IB left Corzine to fend for himself. A board meeting was hastily called and ended Corzine’s dream of building another Goldman Sachs with other peoples’ money.
A little-noticed event occurred at approximately midnight on Monday, October 31, 2011: The national debt of the United States exceeded, for the first time since World War II, the country’s gross domestic product. The website USDebtClock.org showed the gross domestic product crossing the $15 trillion mark for the first time on Monday, while earlier in the day the numbers from TreasuryDirect showed the total public debt outstanding at $14.993 trillion and growing by more than seven billion dollars a day.